It is well known that consumption-tax systems have several advantages over existing income-tax systems, such as greater administrative simplicity and intertemporal neutrality. Despite these advantages, proposals to introduce consumption taxes have only had very limited success. This paper...

This paper analyzes how a fiscal transfer scheme affects tax cooperation in a repeated-interaction model of tax competition. In particular, the paper studies whether a fiscal transfer scheme promotes or blocks voluntary tax cooperation. It is shown that the larger the scale of fiscal transfer...

Research on tax behavior has recognized the necessity of changing tax authorities' approach from an enforcement to a service orientation. However, empirical investigations of the effect of perceived service orientation on tax compliance are scarce. The present study draws conclusions from survey...

A neglected implication of the choice of the tax unit is its impact on the consumption risk carried by taxpayers. As compared to individual taxation, joint taxation with income splitting provides couples with more insurance against the risk of earning inability for one of the spouses. If that...

How is the optimal level of Pigouvian taxation influenced by distributive concerns? With second-best instruments, a higher level of income redistribution calls for a lower level of Pigouvian taxation. More redistribution implies higher distortions from income taxation. Pigouvian tax revenues...

We extend the classical tax-competition framework of Zodrow and Mieszkowski (1986) by modeling involuntary unemployment and by allowing for labor taxation as a second source of public funds. Even though the framework of the Zodrow-Mieszkowski model is extended into two dimensions, we are able to...

An empirically based simulation model consisting of a representative consumer is constructed and calibrated, for the purpose of finding optimal commodity taxes for Norway. The model includes endogenous labor supply and cross-border shopping. Focusing on commodities exposed to cross-border...

This paper reviews and extends recent attempts to better understand fiscal policy decision-making. Surveys of politicians are complementary to traditional empirical analyses and can be used to extract beliefs of policymakers. There is much heterogeneity across and also within parties. Often...

This paper analyses non-cooperative provision of public consumption goods and public production factors. Contrary to previous literature, a number of situations is identified where public consumption goods are oversupplied and public production factors are undersupplied. With source and...

The paper compares research on tax compliance costs for companies in two transition countries - Slovenia and Croatia - with other studies. The main purpose of the comparison is to discover whether the conclusions of the two research projects are similar to those of other studies, and what form...